Julius Baer’s AUM grew 34% in 2013

Swiss financial giant Julius Baer realised an increase of 34% in AUM last year to CHF254 billion (US$229.3 billion) as of the end of December 31 2013.

The assets incorporated CHF 53 billion from Merrill Lynch’s International Wealth Management (IWM) business, which Julius Baer is in the process of acquiring.

During the period, Julius Baer secured a growth of 26% in total client assets (including asset under custody) to CHF 348 billion. Its adjusted profit went up 19% to CHF 480 million.

Its operating income rose to CHF 2.195 billion, an increase of 26%, in line with the growth in monthly average AUM (to CHF 229 billion). The full-year gross margin for the group (including the IWM businesses acquired during the year) therefore remained at 96 basis points.

Net commission and fee income contributed CHF 1.277 billion, up by 30%, slightly above the increase in average AUM. Net interest and dividend income declined by 1% to CHF 552 million. Net trading income increased by 82% to CHF 315 million. Other ordinary results doubled to CHF 51 million.

Julius Baer said in a statement that the IWM integration developed successfully during 2013. Based on current expectation, it is envisaged that by the end of the integration process in early 2015 the group will achieve the asset transfer target, towards the lower end of the CHF 57 billion to CHF 72 billion range, which would thereby also reduce the maximum total transaction price.

In the first half of 2013, CHF 24 billion of IWM AUM were transferred to Julius Baer, of which CHF 12 billion booked on the Julius Baer platforms and paid for. In the second half of 2013, over CHF 28 billion of IWM AUM were additionally transferred to Julius Baer, taking total IWM AUM reported to CHF 53 billion by the end of 2013, of which CHF 40 billion were booked on the Julius Baer platforms and paid for.

Boris F.J. Collardi, chief executive officer of Julius Baer Group Ltd., said: “After a period of intense preparations, the implementation of the IWM integration process paid off in 2013, resulting in an impressive transfer of clients, assets and highly-rated IWM professionals to Julius Baer. In 2014, our focus will shift to improving the cost efficiency of the rapidly grown business, while not losing sight of our ambition to continuously deliver top-quality advice and services to our growing international base of sophisticated clients.”